In a strategic move responding to the uncertain landscape surrounding the Centre’s Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme, Bengaluru-based electric vehicle (EV) charging infrastructure and operating system (OS) provider, Bolt.Earth, has initiated a restructuring process that resulted in the termination of approximately 15-20% of its workforce. However, insider sources indicate that the impact might be as high as 35%, affecting all verticals.
The startup, founded in 2017 by Jyotiranjan Harichandan and Mohit Yadav, began the layoff exercise last week, with employees from various teams, including hardware, product, cloud, and sales, reportedly affected. The decision was communicated through one-on-one interactions with the higher management.
In an exclusive statement to Inc42, cofounder Jyotiranjan Harichandan highlighted that the layoffs were specific to the OS team and emphasized the commitment to efficiency and profitability. Severance pay, based on the employees’ notice period, is being provided to those impacted.
The restructuring comes nearly two months after Bolt.Earth announced a $20 Mn funding round from investors such as Union Square Ventures, Prime Venture Partners, and ITIGO Funds. However, insiders suggest that the funding round was concluded last year, and the delayed announcement was characterized as a “strategic decision” by the cofounders.
Despite the restructuring, Bolt.Earth is reportedly in the midst of securing a $50 Mn funding round from existing investors, having received commitments totaling around $30 Mn. The cofounders refrained from commenting on this aspect.
Sources familiar with the matter suggest that the workforce downsizing is linked to conditions set by investors for the fresh capital infusion. Notably, similar instances of startups laying off employees shortly after fundraising have been observed in the industry.
Bolt.Earth, known for offering charging solutions spanning slow to fast charging for businesses, individuals, and various sectors, raised $4 Mn in its Series A funding round led by Union Square Ventures and Prime Ventures.
While the parent entity, Revos Auto Tech Pte. Ltd, reported a substantial increase in operating revenue to SGD 1 Mn (about INR 6.4 Cr) in FY23, representing a 617% surge from SGD 142K (about INR 89 Lakh) in FY22, the startup also experienced a notable increase in losses, reaching SGD 12.4 Mn (about INR 78.1 Cr) compared to SGD 4 Mn (about INR 25.2 Cr) in the previous fiscal year.
Cofounder Harichandran asserted, “Bolt.Earth is dedicated to driving innovation and remains resolute in our commitment to a sustainable future.”
